I order $45,000 in merchandise with catalog cards. Plasma TV screens, home theatre systems, expensive computer systems, high end electronics, and others. Worst comes to worst and I only turn it into $25,000 cash after using some of it to make down payments on items and lowering the prices and shipping and handling, transaction fees and ect. I set about $8000 of the money aside to make payments on all of the catalog cards for the first 4-5 months. I get an apartment and set another $6000 aside to cover all my bills and rent and utilities and internet and insurances and others for 3-4 months. I put $2500 into my website. Now if the site profits as much as I expect I'll be able to pay off all the cards in less than 12 months and all of the limits will go up and i'll have almost $100,000 available on 6-7 different catalog credit cards. But what if I run out of money? I'll have about $10,000 cash even if everything goes to hell and I don't make any profit from the site and close it down. I take that $10,000-$14,000, put it away somewhere safe, and file bankruptcy. What happens then? Do I still owe $20,000-$25,000 on the cards? I'll for-sure be able to make minimum payments for at least 8 to 12 months no matter what, but what if after that I can't make minimum payments on all of the cards anymore? What happens when I file bankruptcy. It will be interesting to see the many outcomes of this situation from each person. I'm guessing a lot of things come into play like my lawyer and finances, income, ect - so let us just say that I'm not making enough to pay all of the cards, my rent, and ect and already having late payments that I can't make after about 8 to 12 months or longer. What happens? Do I get debt relief? How much? My safe exit plan is to keep that $10,000-$12,000 cash so that after I file bankruptcy I'll still have that $10,000 in cash, an apartment, a job, my bills paid a month ahead of time, and no debt. I can drop a few thousand to get 3-4 months ahead on bills, then open a small site on the side and try again, rebuild my credit, and keep a good $4000-$5000 in a savings account. - So I don't really mind filing for bankruptcy its a risk that is involved and I'm willing to take it. Thanks in advance.
I take that $10,000-$14,000, put it away somewhere safe, and file bankruptcy. the future of america...good lord
? no answer ? im giving back to the system by selling my items at a cheaper price and the people i sell to sell it for slightly higher. I make minimum payments on all of the cars for 7 months, then can't make the payments anymore because it all falls to crap, file bankruptcy, then what happens? I'm almost sure that I'll be able to pay almost all of the cards off within 12 months. at least $30,000 paid back on the cards within 12 months. ?
What's the difference between this, and those con men who buy a bunch of stuff from a bunch of merchants, sell it on e-bay, pocket the money, don't pay their bills, and disappear? Some of them get prison time for fraud.
well... i'm not a con man, i'm not 'pocketing' the money, i'm paying my bills, and not disappearing. I want to know what happens if I have to file bankruptcy though. There is no con or scam or scheme about it. No fraud. If I planned to take the money and run it would be. I'm not purchasing and selling a bunch of catalog merchandise so I can get the money and pocket it. I'm using it to make more money so I can pay off a bunch of cards and get increases on all my limits. IF I do happen to fail though I want to know what happens with the bankruptcy. I'll take all of the money (Even the $10,000 I plan to keep if everything fails) and put it into the cards. But will I get debt relief with bankruptcy? Someone on other forum told me 5 years ago they stopped giving debt relief when you file. ???
What would they lock me up for? The inability to pay a debt? For failure? For not making enough from a business? What? No fraud, no con, not pocketing money, nothing. If they ask I'll give them every cent I got. Fraud or illegal would be doing it just to get money with no intents on paying it back. The majority of all my profits are going to the cards. Fool. :|
"I take that $10,000-$14,000, put it away somewhere safe, and file bankruptcy." That would be the fraud.
I'll only keep $2000-$3000 then. No judge would make you give up every single penny because then you wouldn't be able to pay your bills at all and be right back in the same hole. But if thats the way it is then I won't keep a single cent and will give it all back before I file bankruptcy and make sure I log all spending and earning to prove it. I still wanna know what happens when I file bankruptcy. Probably have to talk 2 a lawyer. It is settled then. Im purchasing $45,000 in merchandise, turning into $25,000 cash, openin the site, paying off the cards, and putting a large down payment on a home. Wish me luck.
What nonsense is it to be considering bankruptcy as part of a game plan to improve your credit? What good is credit without income to cover your debts? What do you use for income? Not the sale of what you buy, at a loss! And every line of credit you open, you state your income. If you get credit by submitting false information, they might go after you for that, and you might not be able to dismiss it thru bankruptcy.
Bankruptcy isn't part of the game plan its part of the exit plan/back-up plan if something goes wrong :| I'd be a fool to go into this blind without knowing how I would handle a bankruptcy in the event it was necessary. The site I'm opening is the income. No employment checks on catalog cards dude =X iight im done. back 2 work =x
Dude, your plan is stupid. First of all no one goes into business to lose money. Selling merch at a break even point or even at a loss is not good business sense. Stores like Target, Macy's, Borders and everyone else do not sell items at a loss. When they sell for less they were able to buy the items at a low margin. Now if you default on the bills the catalog company is able to repo the merch you bought. They are also able to put liens on your cars and whatnot. You will owe every penny that you spent on the cars. You will not get a break from those companies. Unlike you they are in the business to make money. Here's something else to think about. Last year the bankruptcy laws changed. It's now harder to declare it. So before you start your little shell game you will not get much sympathy from the people on this board who had to declare bankruptcy for reasons other than stupidity.
It Isn't A Business Idiot What Part Of It Don't You Understand? I Am Not Selling Merch As A Business, Didn't Say I Was, Didn't Hint Or Even Come Close To Saying It. The Merch = For The Website I'm Opening, Not The Merchandise. Jesus Christ. What Type Of Idiot Would Sell Merchandise With Intents On Knowing He Will Lose Money As A Business? And They Can't Out Liens Or Reposess Sh*t - It Isn"t In The Contract. I Would Have To Sign Papers That Give Them That Ability And I Don't. When You Have Something Intelligent To Say Let Me Know. Dork.
Credit isn't a good in itself. It is only a way to leverage some other transaction, based on your cash and income. If that transaction is a good investment, such as a house that goes up in value, then leverage can increase your return on your cash investment. If that transaction is a bad investment, such as a house or other asset that goes down in value, then you just multiply the amount you are able to lose. Paying cash to try to buy good credit is a waste of money, if you could obtain the same result without throwing good money away. Your scheme is even worse once you adjust for risk. Most people fail to assess risk adequately. By comparison, normal approaches to build credit over a couple of years have virtually no risk.
If you default on the CC and they take you to court and they obtain judgment then they can/will put liens on auto/houses. You dont have the option to tell them no. And I may be incorrect about filing banko but dont you have to list all funds you have? bank accounts? income? So unless you plan on lying to the court about the 10-12k you've stuffed away I doubt that would go through.
